EBRD extends $30m loan to BelVEB to finance small business in Belarus
10:00, — Economics
Bank BelVEB and the European Bank for Reconstruction and Development (EBRD) signed a $30 million loan agreement for five years.
The document was signed by head of the Board of Bank BelVEB Pavel Kallaur and head of the EBRD’s Head of Office in Belarus Francis Delaey.
The loan will be used to finance micro, small and medium-sized enterprises (MSMEs) and projects in the manufacturing industry, services and trade.
“The EBRD’s loan will allow us to strengthen support to MSMEs and thereby contribute to the development of this sector which is expected to contribute at least 30% to the country’s GDP in 2015. Participating in such programs and providing funding for business under simplified rules, BelVEB contributes to the creation of the necessary conditions for private initiative and for robust small business development in the country,” Chairman of the Board of Bank BelVEB Pavel Kallaur said in the agreement signing ceremony.
Francis Delaey, the EBRD’s Head of Office in Belarus, said: “The opening of a credit line according to the MSMEs support program to BelVEB is a practical example of support to the private sector, which is within the priorities of the EBRD’s activities in Belarus. We are pleased to continue the history of cooperation with BelVEB by signing this agreement.”
As of 1 January 2014 the share of loans to MSMEs in the corporate loan portfolio of Bank BelVEB amounted to 32.8%. By early 2016, the Bank plans to bring this figure up to 40%.
A similar agreement between the Bank and the EBRD was signed in December 2010. The three-year collaboration with the EBRD helped BelVEB increase the credit portfolio and customer base. At present, the Bank has 13 points on micro-crediting under the EBRD program. In 2014, the Bank will open more micro-crediting points.
In addition, Bank BelVEB successfully cooperates with the EBRD under the trade facilitation program as an issuing and confirming bank and under the Belarus Sustainable Energy Finance Facility (BelSEFF).
Belvnesheconombank was created in 1991. Today Bank BelVEB is a major universal financial institution. Today Bank BelVEB is part of Vnesheconombank Group. The share of Vnesheconombank (Russia) in the authorized fund of Bank BelVEB Bank is 97.52%.
The European Bank for Reconstruction and Development (EBRD) was established in 1991 and is one of the largest investors in the region of Central and Eastern Europe and the CIS. The Bank invests mainly in the private sector, usually together with commercial partners. Belarus joined the EBRD in 1992.